Canadian Tax on U.S. Social Security Payments

The U.S. Social Security benefits have following tax implications in Canada and the U.S.

Canadian tax implications

If a taxpayer is a non-resident for tax purposes in Canada then there is no tax in Canada. 

The U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. The 15% exemption is due to the U.S. – Canada tax treaty. 

U.S. tax implications

If a taxpayer is a non-resident for tax purposes in the U.S. then there is no tax in the U.S.

If a taxpayer is a resident of U.S. then it is taxed as regular income.